Financial Technology

InterCloud Divests Subsidiary to Eliminate More Than $6 Million Liabilities

InterCloud Systems, a provider of end-to-end IT and telecom solutions to the service provider and corporate enterprise markets through cloud platforms and professional services, has completed the divestment of Environmental Remediation and Financial Services.

The development will help InterCloud eliminate over $6.0 million of liabilities, including $4.2 million of Series I Preferred Stock; an earn-out liability estimated at $2.1 million; and current liabilities of approximately $146,000, the company said.

Environmental Remediation and Financial Services is the wholly owned subsidiary of ADEX Corporation, which is owned by InterCloud Systems.

The divestment effective as of October 1, 2013, will help InterCloud to further focus its business on IT and telecom markets.

InterCloud specializes in cloud and managed services and professional consulting services to support the build-out and operation of some of the most advanced enterprise, fiber optic, Ethernet and wireless networks in the world.

The company recently announced that its Professional Services Group was awarded over $2.5 million in new professional services contracts, from new and existing clients.

"We have made tremendous headway in our plans, and this is yet another important step forward as we continue to strengthen our balance sheet and focus in the marketplace for future growth,” said Mark Munro, CEO of InterCloud, in a statement.

The company’s strategy is to offer a wide range of services so that customers need to use fewer vendors to meet their network management needs. As part of this, the company continues to acquire specific core competencies and organically grow our professional services offering to help us meet the growing demands of these large customers.

“The combination of professional services and cloud solutions is an advantage in our offerings as we have the capability to deploy a wide range of professional engineers throughout the world as necessary,” Munro added. “Our large enterprise and carrier customers demand this type of immediate worldwide deployment and we expect this to be a differentiator for our sales organization.”